Credit Card Alert: According to the order of the Reserve Bank of India, from July 1, 2024, all credit card payments will be processed in a special way. Do you know what that method will be? Know here-
Credit Card Alert: It’s time for an alert for those who use credit cards. There are only 6 days left for the month of June to end and on July 1, a rule related to credit card is going to be implemented which can have a direct impact on you.
It is the order of Reserve Bank of India
Actually, the Reserve Bank of India has already ordered that after June 30, 2024, all credit card payments will be processed through Bharat Bill Payment System-BBPS. According to the information, big banks like HDFC Bank, ICICI Bank and Axis Bank have not activated BBPS yet. All these banks together have issued 5 crore credit cards to the customers.
What will change after June 30
- Banks or lenders who have not yet complied with the instructions will also not be able to make credit card bill payments for them after June 30.
- Fintechs like PhonePe and Credi, which are already members of BBPS, are also required to follow these instructions of RBI by June 30.
- However, quoting the Economic Times, it has been said that the payment industry has demanded to extend the last date or timeline by 90 days.
- According to a report by the Economic Times, only 8 banks have activated the bill payment service on BBPS so far. Although a total of 34 banks have been approved to issue credit cards, only 8 of these banks have currently activated BBPS.
Which banks have activated BBPS?
Lenders like SBI Card, BOB (Bank of Baroda) Card, IndusInd Bank, Federal Bank and Kotak Mahindra Bank have activated BBPS.
Why has RBI issued this order?
The Reserve Bank has issued the order for centralized payment of credit cards because it will provide better visibility for payment trends. At the same time, it will provide a better way to track and resolve fraudulent transactions.
